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              Researh Sevice






COVID-19: Defense Production Act (DPA)

Developments and Issues for Congress



Updated May 15, 2020

The White House is employing the Defense Production Act of 1950 (DPA) in response to the Coronavirus
Disease 2019 (COVID-19) pandemic to facilitate the production and availability of essential goods,
supplies, and services. This Insight considers recent DPA actions and associated policy considerations for
Congress. It is a companion to CRS Insights INl1337, IN11280, and 1N11231. See CRS Report R43767
for a more in-depth discussion of DPA history and authorities.


New DPA Actions in Response to COVID-19

Since April 15, eight DPA actions have been made public:
   *   According to Federal Procurement Data System (FPDS) COVID- 19 records, the Federal
       Emergency Management Agency (FEMA) issued four DPA priority-rated orders to the
       3M company for N95 respirators on April 16, April 21, and April 28, per an April 2 White
       House memorandum. FEMA announced the DPA priority-rated orders for N95 respirators
       from 3M onApril 14.
   *   On April 20, the Department of Defense (DOD) announced it set aside $750 million of $1
       billion in new DPA Title III appropriations for health resources, with $250 million
       reserved for defense industrial base investments.
   *   On April 21, DOD announced a $133 million Title III investment in N95 respirator
       production, per a previous April 11 announcement.
   *   The Department of Justice (DOJ) charged a New York resident on April 24, and w,,o
       individuals on April 28, with violating DPA anti-hoarding/price-gouging provisions.
   *   On April 28, President Trump issued Executive Order (E.O.) 13917 directing the
       Department of Agriculture (USDA) to exercise DPA authorities to address meat
       processing plant closures, and any other food supply chain issues, due to the pandemic.
   *   On April 29, DOD announced $75 million in DPA Title III investments to increase nasal
       swab production, per the President's April 19 DPA invocation.

                                                             Congressional Research Service
                                                             https://crsreports.congress.gov
                                                                                 IN11387

CRS NStGHT
Prepaimed for Mernbei-s and
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